The headline inflation of prices in Davao de Oro increased to 4.9 percent in February 2024 from 4.1 percent in January 2024, or an increase of 0.8 percentage point. Inflation of prices in February 2023 was higher at 12.3 percent. The average inflation for the year 2024 stood at 4.5 percent. (Table 1 and Figure 1)

                                                                   * Year-on-year change of average CPI for February 2024 vs. 2023

                                              Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority

Figure 1. Headline Inflation Rates in Davao de Oro (in percent), All Items (2018 = 100)

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority

The increase in the province’s inflation was mainly brought about by the uptrend annual rate in the index of Food and non-alcoholic beverages which increased to 9.2 percent from 8.1 percent in January 2024; Transport at 0.3 percent from -2.6 percent in January 2024; and Housing, water, electricity, gas and other fuels at -4.8 percent from -5.9 percent in January 2024. (Table 2) 

On the uptrend of the February 2024 inflation, these three commodity groups had a share of 56.0 percent, 24.4 percent, and 19.6 percent, respectively. 

The following commodity groups posted a downtrend in the overall inflation during the period as compared with their previous month’s inflation rates:

a. Alcoholic beverages and tobacco, 8.6 percent;
b. Clothing and footwear, 7.0 percent; 
c. Furnishings, household equipment and routine household maintenance, 8.2 percent;
d. Health, 6.7 percent;
e. Information and communication, 0.4 percent;
f. Recreation, sport and culture, 14.0 percent;
g. Restaurant and accommodation services, 0.0 percent; and
h. Personal care, and miscellaneous goods and services, 4.5 percent.

Food and non-alcoholic beverages group shared the highest contribution for the month’s inflation rate at 4.6 points (93.1 percent). As to the percent share to the month’s uptrend rate of the said commodity group, Cereals and cereal products posted the highest percent share with 16.7 percent inflation rate, followed by Fish and other seafood with 8.5 percent inflation rate, and Fruits and nuts with 35.5 percent inflation rate. (Table 3) 

The second highest contributor for February 2024 inflation rate is the Furnishings, household equipment and routine household maintenance commodity group with a contribution of 0.3 points (5.3 percent) among all items. Under this group, Non-durable household goods posted the highest percent share with 7.8 percent inflation rate; followed by Domestic services and household services with 12.9 percent inflation rate, and Major household appliances, whether electric or not with 7.9 percent inflation rate.

Clothing and footwear commodity group ranked third with a contribution of 0.24 points (4.9 percent). Under this group, Garments posted the highest percent share with 7.5 percent inflation rate, followed by Shoes and other footwear with 5.8 percent inflation rate, and Cleaning, repair, tailoring and hire of clothing with 2.1 percent inflation rate. (Table 5)

Below is the inflation rates trend of Davao de Oro Province since the rebasing of market basket with year 2018 as the base year.

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority

Consequently, the Purchasing Power of Peso (PPP) based on year 2018 in Davao de Oro is equivalent to 0.76 in February 2024. (Figure 2)

Figure 2. Purchasing Power of Peso in Davao de Oro (2018 = 100)

February 2023 – February 2024

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority

Technical Notes

Price – is the amount or value paid in exchange for the commodity or a service rendered.

Retail/Consumer Price – refers to the price at which a commodity is sold in small quantities for consumption. 

Market Basket– a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.

Consumer Price Index (CPI) – it is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by an average Filipino household. It shows how much on the average, prices of goods and services have increased or decreased from a particular reference period known as base year.

Inflation Rate – is an indicator derived from the CPI. It refers to the annual rate of change or the year-on-year change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money.

Weight– a value attached to a commodity or group of commodities depending on the magnitude of its contribution to the index.

Base Period – a reference date at which the index is equal to 100. Base year is 2018.

Index Methodology– a Laspeyre’s formula: fixed base year and weights. 

Purchasing Power of the Peso (PPP) – the measure of how much the peso in the base period is worth in the current period.

Percentage Change– is a simple mathematical concept that represents the degree of change over time. It is used for many purposes in finance, often to represent the price change of a security.

Headline Inflation– measures changes in the cost of living based on movements in the prices of a specified basket of major commodities. It refers to the annual rate of change or the year-on-year change in the Consumer Price Index (CPI).